Andrx abandons brand-name drug business
Andrx is selling off its brand-name pharmaceutical business and ending its supply and distribution contract with Pfizer for its hypertension drug Cardura XL.
Andrx decided to shed its brand-name division to focus on development and distribution. The company will end its contract with Pfizer for Cardura XL because the drug failed to win FDA approval by Dec. 31. Andrx is seeking a refund of the $10 million it paid Pfizer in connection with the agreement for Cardura XL, exercising its right to end the November 2003 deal.
Andrx retained Banc of America Securities to seek offers for its brand-name business, which sustained operating losses of about $31 million for the first nine months of 2004.